Volvo Cars is recalling over 40,000 of its flagship electric EX30 SUVs because of a risk of battery packs overheating and catching fire.
The recall involves replacing modules in the high-voltage battery packs in the SUV, which is a crucial model in Volvo’s push to compete with cheaper Chinese brands. The news was first reported by Reuters.
The recall covers a total of 40,323 model year 2024-2026 EX30 Single-Motor Extended Range and Twin-Motor Performance cars that have the high-voltage cells. Volvo is a Sweden-based automaker that is majority-owned by China’s Geely.
VOLVO RECALLS MORE THAN 450,000 VEHICLES OVER BACKUP CAMERA ISSUE
Volvo said it plans to replace affected units free of charge and is urging owners to continue limiting their charging to 70% until repairs can occur to eliminate the fire risk.
“Our investigations have identified that in very rare cases, the affected vehicles can overheat when charged to a high level. In a worst-case scenario this could lead to a fire starting in the battery,” Volvo told FOX Business in a statement.
The automaker said, in total, 40,323 cars are affected globally; of those, it has “identified 189 in the U.S. that will be inspected and fixed if necessary.”
VOLVO REVERSES GOAL TO MAKE ONLY EVS IN 2030
The automaker first told EX30 owners in over a dozen countries – including the U.S., Australia and Brazil – in December to park their vehicles away from buildings and cap charging at 70%, according to regulatory filings and the company.
Volvo may face a high cost for replacing the battery packs, as a Reuters analysis based on what a Chinese battery maker might charge resulted in an estimate of $195 million, excluding logistics and repair costs. Volvo said the calculations were “speculative in nature” and that it’s in discussions with the supplier.
The automaker is pursuing deeper integration with its parent company, Geely, while the batteries were made by a Geely-backed joint venture known as Shandong Geely Sunwoda Power Battery Co. Volvo indicated the supplier has fixed the problem and will supply the new battery cells.
NISSAN RECALLS OVER 640,000 VEHICLES FOR ENGINE AND GEAR ISSUES
Andy Palmer, an auto industry veteran who oversaw the launch of Nissan Motor’s Leaf EV in 2010, said that Volvo has less room for missteps than its rivals because its safety reputation is a central part of its identity as a company.
“Volvo can’t afford a safety issue because that strikes at the heart of their brand,” Palmer said.
Volvo said it is contacting the owners of affected cars to advise them about the next steps in the recall.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Reuters contributed to this report.
